Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Northern TrustFRA:NT4 +0.13%76 Return-on-Tangible-Equity is 17.25% as of Mar. 2026, which is 30% above its 10-year median of 13.29. GuruFocus rates FRA:NT4 with a GF Score™ of 76/100 and a GF Value™ of €102.70 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,591 Asset Management companies, Northern Trust ranks better than 71.02% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Northern Trust's annualized net income for the quarter that ended in Mar. 2026 was €1,818 Mil. Northern Trust's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €10,539 Mil. Therefore, Northern Trust's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.25%.
The historical rank and industry rank for Northern Trust's Return-on-Tangible-Equity or its related term are showing as below:
FRA:NT4'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.18 Med: 13.29 Max: 17.44
Current: 15.31
During the past 13 years, Northern Trust's highest Return-on-Tangible-Equity was 17.44%. The lowest was 10.18%. And the median was 13.29%.
FRA:NT4's Return-on-Tangible-Equity is ranked better than 71.02% of 1591
companies
in the Asset Management industry
Industry Median: 7.21
vs FRA:NT4: 15.31
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Northern Trust Return-on-Tangible-Equity Related Terms
Northern Trust Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Northern Trust's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:NT4 vs RJF, ARES, TROW: Return-on-Tangible-Equity Comparison
For the Asset Management subindustry, Northern Trust's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Northern Trust Return-on-Tangible-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Northern Trust's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Northern Trust's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 17.25% mean?
Northern Trust (FRA:NT4) has a Return-on-Tangible-Equity of 17.25% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Northern Trust and its competitors. This is 30% above median its historical median of 13.29. Over the past decade, Northern Trust's Return-on-Tangible-Equity has ranged from 10.18 to 17.44. According to the industry distribution chart, Northern Trust ranks #461 out of 1591 companies in the Asset Management industry, placing it in the top 29%.
Is Northern Trust's Return-on-Tangible-Equity too high?
Northern Trust's current Return-on-Tangible-Equity of 17.25% is 30% above median its 10-year median of 13.29. Over the past 10 years, this metric has ranged from a low of 10.18 to a high of 17.44. The Asset Management industry median Return-on-Tangible-Equity is 7.21. Northern Trust's value of 17.25% is 139.3% above this industry median. Based on the distribution chart, Northern Trust ranks #461 out of 1591 companies in the Asset Management industry, which is above the industry midpoint. Overall, Northern Trust has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Northern Trust's Return-on-Tangible-Equity compare to RJF and ARES?
According to the Asset Management industry distribution chart, Northern Trust ranks #461 out of 1591 companies for Return-on-Tangible-Equity. This puts Northern Trust in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.21. Northern Trust's value of 17.25% is 139.3% above this benchmark. Historically, Northern Trust's own Return-on-Tangible-Equity has ranged from 10.18 to 17.44 over the past decade. While the company's 10-year median is 13.29 vs. the industry median of 7.21, Northern Trust has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.21, based on 1,591 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Northern Trust's current Return-on-Tangible-Equity of 17.25% is 139.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Northern Trust and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northern Trust's current Return-on-Tangible-Equity is 17.25%, which is 30% above median its own 10-year median of 13.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northern Trust stock overvalued right now?
Based on GuruFocus' analysis, Northern Trust (FRA:NT4) is currently considered Significantly Overvalued. The stock's GF Value™ is €102.70, compared to a current price of €159.00 — trading 54.8% above its estimated fair value. The current Return-on-Tangible-Equity is 17.25%, which is 30% above median its 10-year median of 13.29 and 139.3% above the Asset Management industry median of 7.21. Northern Trust's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Northern Trust (FRA:NT4), the current Return-on-Tangible-Equity is 17.25% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Northern Trust (FRA:NT4) Overvalued in 2026?
Based on GuruFocus' analysis, Northern Trust stock appears to be overvalued.
The current stock price of €159.00 is trading 54.8% above its estimated GF Value™ of €102.70.
GuruFocus considers Northern Trust to be Significantly Overvalued.
Key valuation signals for FRA:NT4:
Return-on-Tangible-Equity: 17.25% (30% above median its 10-year median of 13.29)
GF Value™: €102.70 vs. price of €159.00 (54.8% above fair value)
Industry Position: 139.3% above the Asset Management median (#461 of 1591)
No single metric tells the full story. See the FRA:NT4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northern Trust is a leading provider of wealth management, asset servicing, asset management, and banking to corporations, institutions, affluent families, and individuals. Founded in Chicago in 1889, Northern Trust has offices in 20 states and Washington, D.C. as well as 23 locations in Canada, Europe, the Middle East, and Asia-Pacific. As of December 2025, Northern Trust had assets under custody or administration of $18.7 trillion and assets under management of $1.8 trillion.
76GF Score
Get the complete analysis for FRA:NT4
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:NT4 has been successfully added to your 
